Photograph: Jim Watson/AFPUS President Donald Trump said he is nominating Kevin Warsh as Federal Reserve chair, backing a well-known policymaker to run the US central bank at a time when it is facing one of the most severe tests of its independence. Mr Trump’s decision to nominate Mr Warsh caps the most contentious race to head the world’s most important central bank in recent memory. Long-term US borrowing costs ticked up after reports on Thursday evening that Trump was preparing to choose Warsh for Fed chair. However, officials at the central bank kept borrowing costs on hold this week and have offered starkly differing assessments on the path of monetary policy in 2026. The Supreme Court’s looming decision on whether to allow Mr Trump to fire governor Lisa Cook will also be a crucial moment in shaping the future of the central bank.

Source: The Irish Times January 30, 2026 14:27 UTC